A company uses customers served as its measure of activity….
A company uses customers served as its measure of activity. The following Flexible Budget Performance Report will be used to compare the planning budget to the actual operating results for August. Add the flexible budget and compute the revenue and spending variances and then the activity variances for the month. Actual Results COL A COL B COL CPlanning BudgetCustomers served (q)28,800 31,000Revenue ($3.60q)$ 102,500 $ 111,600Wages & Salaries ($27,000 + $1.70q)$ 69,100 $ 79,700Supplies ($15,000 + $.40q)$ 22,300 $ 27,400Net operating income$ 11,100 $ 4,500Required:Label 3 lines in the answer area COL A, COL B, COL C. Put the proper label to start the column entries and then the numbers you would place in the boxes under that label.a. Prepare the company’s flexible budget for the month in the proper column of the performance report. (4)b. Fill in the dollar amount of the revenue and spending variances and label each of the variances from revenue through net operating income properly as either favorable (F) or unfavorable (U). (4)c. Fill in the dollar amount of the activity variances and label each of the variances from revenue through net operating income properly as either favorable (F) or unfavorable (U). (4)(Numbers for variances will receive no credit without indicating whether they are favorable or unfavorable)d. Label both variance columns. (1)